NEW YORK, June 30 (Reuters Breakingviews) – With space startups, the sky is the limit. Momentus, a satellite-transport outfit, shows how quickly the sky can fall. Its revised merger deal with blank-check firm Stable Road Acquisition (SRAC.O) values Momentus at $567 million, half its $1.1 billion worth previously.
Stable Road set out in late 2019 to find a merger partner in or adjacent to the cannabis business. It ended up backing development-stage water plasma propulsion technology in space. Now after the U.S. government intervened on national-security grounds, Momentus’s two co-founders have gone, selling their stock back to the company. Thanks to this and launch delays, Momentus has pushed back its financial projections by 18 months, cutting its 2027 EBITDA forecast in half to a still ambitious $1.3 billion.
The new valuation salvages a deal for the SPAC, which might have to hand money back to shareholders if it doesn’t close a transaction by August. Momentus, like other space SPAC deals , was always a low-probability bet on a gigantic market. It could still pay off. But given its tribulations, new investors need to be smoking something to get on board. (By Robert Cyran)
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